BYA: October 5, 2010

Question: If the Bush tax cuts are not extended, when will taxpayers first see the impact? Will withholding rated increase on January 1, 2011, and will we see reduced take-home pay after that date?

Submitted by: Bob Brooke

Answer: According to Dagen McDowell from the Fox Business Network, if the Bush tax cuts are not extended, taxpayers will see the impact on January 1, 2011. Withholding rates will immediately rise and taxpayers will see more money withheld from their paychecks beginning on the first of the year. Of course, Congress can vote to extend part, or all of the Bush Era Tax Cuts, provided President Obama signs the legislation.

Source/Guest: Dagen McDowell, Fox Business Network